Minneapolis Real Estate Market Analysis: July 2008

During the month of July 2008 in Minneapolis, the number of new listings decreased yet again, according to the Minneapolis Area Association of Realtors’ Market Update for 100 Twin Cities Communities. During July, there were 1,016 new listings. In July 2007, there were 1,106 new listings. That is a drop of -8.1%. The Uptown/Lakes community experienced the greatest decrease in new listings during July, with 101 new listings in compared to July of 2007’s 29. 58.6%Conversely, the University community, which experienced a decline of -58.6% in new listings during June, has seen its new real estate listings jump 40.0% during July 2008 compared to last year. That sounds big, but really there were 20 new listings during July last year, whearas there were 28 this year. Here is an inventory of July 2008 new listings in Minneapolis by community and the percentage of change that has occurred compared to July 2007 (To see a Barker & Hedges article about June 2008 Minneapolis Market Activity, please click here.)

Camden 148 (+2.8%)
Downtown Minneapolis 126 (-19.7%)
Longfellow 63 (-11.3%)
Nokomis 120 (-12.4%)
North 130 (+4.0%)
Northeast 71 (-13.4%)
Phillips 27 (+12.5%)
Powderhorn 83 (+31.7%)
Southwest 120 (-7.7%)
University Area 28 (+40.0%)
Uptown-Lakes 101 (-32.7%)

Minneapolis’ posted new listing for the 2008 year-to-date change that outlook a bit. From January through July of 2008, there were 7,210 new listings, compared to 8,206 during the same time period of 2007. That is a decrease of -12.1%, just a hair better than last month’s -12.8% year-to-date change. The most dramatic adjustments happened in the Uptown-Lakes and Downtown areas, which have experienced a drop in new listings of -27.3% and -23.6% respectively compared to last year. The Phillips community has experienced an increase in new listings to the tune of 22.9% and 11.9% respectively. Here is a depiction of new listings in Minneapolis by community for the 2008 year to date and the percentage of change that has occurred compared to 2007:

Camden 986 (-5.0%)
Downtown Minneapolis 915 (-23.6%)
Longfellow 396 (-9.6%)
Nokomis 836 (-19.4%)
North 902 (+10.7%)
Northeast 534 (-17.5%)
Phillips 220 (+22.9%)
Powderhorn 561 (+13.6%)
Southwest 888 (-15.7%)
University Area 170 (-15.8%)
Uptown-Lakes 801 (-27.3%)

Overall, Minneapolis closed sales dropped during July! Throughout the month, there were 473 properties sold, which means there were -7.6% fewer closed sales than in July of 2007. For the 2008 year to date, the City of Minneapolis closed sales are -4.1% lower than last year. 2,646 home sales were closed in Minneapolis so far in 2008 compared to 2,760 during the same time period of 2007. Homes seem to be selling like hotcakes in the Camden, North, and Powderhorn communities while closed sales are dragging more considerably in Phillips, Longfellow, and University areas.

When it comes to home sales prices, it probably comes as no surprise that they have dropped some more. The average sales price of a home in Minneapolis was $233,770 which is -11.0% less than last year’s $262,595, but much better than June’s $222,804. The average sales price year-to-date in the City of Minneapolis is increasing, as from January through July of 2008 the average sales price of a home was $219,510, which is -15.7% lower than 2007’s $260,511 but, once again, is better than June’s $214,406. The percentage of Minneapolis homes which sold at their original list price was 91.3% during the month of July, down from 95.1% in 2007. The communities which are doing better, however, include Downtown Minneapolis and the Uptown Area, which have experienced increases in real estate values due to high demand for properties here.

Average prices of homes sold in Minneapolis by community during July 2008:

Camden $83,278 (-38.3%)
Downtown $358,812 (+29.0%)
Longfellow $181,341 (-15.8%)
Nokomis $213,987 (-11.4%)
North $57,846 (-42.8%)
Northeast $181,839 (-8.9%)
Phillips $110,020 (-27.0%)
Powderhorn $146,133 (-13.6%)
Southwest $363,039 (+4.4%)
University Area $216,353 (-23.3%)
Uptown-Lakes $464,491 (+10.5%)

Lastly, homes for sale in Minneapolis are staying on the market for much longer than they were in 2007. Last year in July, a Minneapolis home was on the market for an average of 101 days before selling. During July of 2008, a home was on the market for an average of 126 days when it sold. The statistics vary based on neighborhood and the types of housing on the market. Condos and town homes are being snapped up much more quickly, while single family homes are staying on the market for much longer. Here is the average number of days a home is on the market at the time of sale by individual Minneapolis community during the month of July 2008.

Camden 161 (-6.6%)
Downtown Minneapolis 105 (+28.2%)
Longfellow 77 (-7.1%)
Nokomis 90 (+11.7%)
North 161 (-17.2%)
Northeast 125 (+49.2%)
Phillips 134 (+6.0%)
Powderhorn 120 (+23)
Southwest 120 (+26.6%)
University Area 169 (+98.5%)
Uptown-Lakes 117 (+33.6%)

This is a brief analysis of the Minneapolis real estate market based on calculations by the Minneapolis Area Association of Realtors. These statistics do not reflect each individual situation of course.

Browse homes for sale by Minneapolis community:

Calhoun Isle Real Estate
Camden Real Estate
Central Real Estate
Longfellow Real Estate
Phillips Real Estate
Powderhorn Real Estate
Near North Real Estate
Nokomis Real Estate
Northeast Real Estate
Southwest Real Estate
University Real Estate

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